Why is the US steel industry important?
The US steel industry has shown clear demand for a hedging and price risk management tools like the LME steel billet contract. As the economy recovers, the physical industry will be able to collateralise material and hedge against price movements as exporting increases again. As with Europe and Asia, the LME are continuously assessing potential new delivery locations in the US, from 29 July, New Orleans will become the first US location for good delivery against the steel billet contract. The LME continue to review new steel brand applications to facilitate the adoption of the steel contract by US market participants.